SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
Test your basic knowledge |
AP Microeconomics
Start Test
Study First
Subjects
:
economics
,
ap
Instructions:
Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. The philosophy that a citizen should receive a share of economic resources proportional to the marginal revenue product of his or her productivity
Total Welfare
Marginal Productivity Theory
Marginal Analysis
Monopolistic competition long-run equilibrium
2. Ed = 1
Absolute Advantage
Non-collusive oligopoly
Unit elastic demand
Economic Growth
3. Goods that are both nonrival and nonexcludable. One person's consumption does not prevent another from also consuming that good and if it is provided to some - it is necessarily provided to all - even if they do not pay for that good
Economics
Positive externality
Determinants of Labor Demand
Public goods
4. Goods that are both rival and excludable. Only one person can consume the good at a time and consumers who do not pay for the good are excluded from consumption
Cartel
Luxury
Private goods
Profit Maximizing Resource Employment
5. A firm that has market power in the factor market (a wage-setter)
Average Variable Cost (AVC)
Monopsonist
Profit Maximizing Resource Employment
Short run
6. Excess demand; a shortage exists at a market price when the quantity demanded exceeds the quantity supplied
Least-Cost Rule
Specialization
Law of Supply
Shortage
7. In the case of a public good - some members of the community know that they can consume the public good while others provide for it. This results in a lack of private funding and forces the government to provide it
Marginal Resource Cost (MRC)
Shortage
Free-Rider Problem
Price inelastic demand
8. Occurs when LRAC is constant over a variety of plant sizes
Total Product of Labor (TPL)
Unit elastic demand
Constant Returns to Scale
Profit Maximizing Resource Employment
9. Costs of inputs - technology and productivity - taxes/subsidies - producer speculation - price of other goods that could be produced - and number of sellers all influence supply
Law of Supply
Subsidy
Determinants of Supply
Natural Monopoly
10. Another way of saying that firms are earning zero economic profits or a fair rate of return on invested resources
Constant Returns to Scale
Economics
Determinants of Supply
Normal Profit
11. A legal maximum price above which the product cannot be sold. If a floor is installed at some level above the equilibrium price - it creates a permanent shortage
Price Ceiling
Utility Maximizing Rule
Comparative Advantage
Profit Maximizing Resource Employment
12. The marginal utility from consumption of more and more of that item falls over time
Law of Diminishing Marginal Utility
Utility Maximizing Rule
Marginal Resource Cost (MRC)
Monopsonist
13. A group of firms that agree not to compete with each other on the basis of price - production - or other competitive dimensions. Cartel members operate as a monopolist to maximize their joint profits
Cartel
Spillover costs
Substitute Goods
Average Variable Cost (AVC)
14. Ex -y = (%dQd good X) / (%d Price Y). If Ex -y > 0 - goods X and Y are substitutes. If Ex -y < 0 - goods X and Y are complementary
Marginal Analysis
Comparative Advantage
Public goods
Cross-Price Elasticity of Demand
15. The more of a good that is produced - the greater the opportunity cost of producing the next unit of that good
Total Revenue
Normal Profit
Law of Increasing Costs
Cartel
16. A very diverse market structure characterized by a small number of interdependent large firms - producing a standardized or differentiated product in a market with a barrier to entry
Law of Demand
Negative externality
Short run
Oligopoly
17. Production inputs that cannot be changed in the short run. Usually this is the plant size or capital
Profit Maximizing Rule
Marginal Product of Labor (MPL)
Surplus
Fixed inputs
18. The imbalance between limited productive resources and unlimited human wants
Scarcity
Least-Cost Rule
Non-collusive oligopoly
Marginal Analysis
19. An economic system based upon the fundamentals of private property - freedom - self-interest - and prices
Oligopoly
Increasing Cost Industry
Determinants of Labor Demand
Market Economy (Capitalism)
20. The rate paid on the last dollar earned. This is found by taking the ratio of the change in taxes divided by the change in income
Comparative Advantage
Short run
Marginal tax rate
Price elasticity
21. The downward part of the LRAC curve where LRAC falls as plan size increases. This is the result of specialization - lower cost of inputs - or other efficiencies of larger scale.
Constant Returns to Scale
Law of Supply
Monopoly
Economies of Scale
22. The total quantity - or total output of a good produced at each quantity of labor employed
Unit elastic demand
Absolute prices
Total Product of Labor (TPL)
Perfect competition
23. Product demand - productivity - prices of other resources - and complementary resources
Determinants of Labor Demand
Natural Monopoly
Production function
Marginal Revenue Product (MRP)
24. For one good - constrained by prices and income - a consumer stops consuming a good when the price paid for the next unit is equal to the marginal benefit received
Constrained Utility Maximization
Demand for Labor
Marginal tax rate
Dead Weight Loss
25. A per unit tax on production results in a vertical shift in the supply curve by the amount of the tax
Excise Tax
Perfect competition
Income Elasticity
Diseconomies of Scale
26. Additional benefits to society not captured by the market demand curve from the production of a good - result in a price that is too high and a market quantity that is too low. Resources are underallocated to the production of this good
Spillover benefits
Private goods
Dead Weight Loss
Average Variable Cost (AVC)
27. Ed = 8 - infinite change in demand to price change
Non-collusive oligopoly
Implicit costs
Total Product of Labor (TPL)
Perfectly elastic
28. The difference between your willingness to pay and the price you actually pay. It is the area below the demand curve and above the price
Luxury
Consumer surplus
Diseconomies of Scale
Demand for Labor
29. The firm hires the profit maximizing amount of a resource at the point where MRP = MRC
Profit Maximizing Resource Employment
Monopsonist
Law of Increasing Costs
Inferior Goods
30. Models where firms agree to mutually improve their situation
Determinants of Labor Demand
Normal Goods
Total Welfare
Collusive oligopoly
31. The additional cost incurred from the consumption of the next unit of a good or a service
Price elastic demand
Marginal Cost (MC)
Monopoly long-run equilibrium
Price Ceiling
32. The difference between total revenue and total explicit and implicit costs
Normal Goods
Economic Profit
Spillover benefits
Market Equilibrium
33. Ei = (%dQd good X)/(%d Income)
Substitution Effect
Income Elasticity
Subsidy
Specialization
34. 0 < Ei < 1
Law of Supply
Necessity
Demand for Labor
Absolute Advantage
35. Indirect - non-purchased - or opportunity costs of resources provided by the entrepreneur
Natural Monopoly
Implicit costs
Necessity
Income Elasticity
36. The mechanism for combining production resources - with existing technology - into finished goods and services
Constrained Utility Maximization
Income Effect
Excess Capacity
Production function
37. Characterized by many small price-taking firms producing a standardized product in an industry in which there are no barriers to entry or exit
Perfectly competitive long-run equilibrium
Law of Demand
Non-collusive oligopoly
Perfect competition
38. Two goods are consumer substitutes if they provide essentially the same utility to consumers
Derived Demand
Shortage
Accounting Profit
Substitute Goods
39. A good for which higher income decreases demand
Total Revenue Test
Inferior Goods
Increasing Cost Industry
Substitute Goods
40. The change in quantity demanded resulting from a change in the price of one good relative to other goods
Substitution Effect
Shortage
Absolute prices
Complementary Goods
41. The rational decision maker chooses an action if MB = MC
Marginal Analysis
Private goods
Decreasing Cost industry
Monopolistic competition
42. Has opposite effect of an excise tax - as it lowers the marginal cost of production - forcing the supply curve down
Subsidy
Monopoly
Shutdown Point
Spillover costs
43. The difference between the monopolistic competition output Qmc and the output at minimum ATC. Excess capacity is underused plant and equipment
Excess Capacity
Oligopoly
Unit elastic demand
Necessity
44. The sum of consumer surplus and producer surplus
Average Fixed Cost (AFC)
Excise Tax
Total Welfare
Excess Capacity
45. Ei > 1
Economic Growth
Luxury
Perfect competition
Total Product of Labor (TPL)
46. A measure of industry market power. Sum the market share of the four largest firms and a ratio above 40% is a good indicator of oligopoly
Four-firm concentration ratio
Break-even Point
Marginal tax rate
Resources
47. Demand for a resource like labor is derived from the demand for the goods produced by the resource
Derived Demand
Break-even Point
Utility Maximizing Rule
Profit Maximizing Resource Employment
48. Additional costs to society not captured by the market supply curve from the production of a good - result in a price that is too low and a market quantity that is too high. Resources are overallocated to the production of this good
Inferior Goods
Spillover costs
Economics
Total Product of Labor (TPL)
49. Exists if a producer can produce more of a good than all other producers
Economies of Scale
Absolute Advantage
Average Fixed Cost (AFC)
Price inelastic demand
50. Entry of new firms shifts the cost curves for all firms downward
Absolute Advantage
Average Total Cost (ATC)
Non-collusive oligopoly
Decreasing Cost industry
Sorry!:) No result found.
Can you answer 50 questions in 15 minutes?
Let me suggest you:
Browse all subjects
Browse all tests
Most popular tests
Major Subjects
Tests & Exams
AP
CLEP
DSST
GRE
SAT
GMAT
Certifications
CISSP go to https://www.isc2.org/
PMP
ITIL
RHCE
MCTS
More...
IT Skills
Android Programming
Data Modeling
Objective C Programming
Basic Python Programming
Adobe Illustrator
More...
Business Skills
Advertising Techniques
Business Accounting Basics
Business Strategy
Human Resource Management
Marketing Basics
More...
Soft Skills
Body Language
People Skills
Public Speaking
Persuasion
Job Hunting And Resumes
More...
Vocabulary
GRE Vocab
SAT Vocab
TOEFL Essential Vocab
Basic English Words For All
Global Words You Should Know
Business English
More...
Languages
AP German Vocab
AP Latin Vocab
SAT Subject Test: French
Italian Survival
Norwegian Survival
More...
Engineering
Audio Engineering
Computer Science Engineering
Aerospace Engineering
Chemical Engineering
Structural Engineering
More...
Health Sciences
Basic Nursing Skills
Health Science Language Fundamentals
Veterinary Technology Medical Language
Cardiology
Clinical Surgery
More...
English
Grammar Fundamentals
Literary And Rhetorical Vocab
Elements Of Style Vocab
Introduction To English Major
Complete Advanced Sentences
Literature
Homonyms
More...
Math
Algebra Formulas
Basic Arithmetic: Measurements
Metric Conversions
Geometric Properties
Important Math Facts
Number Sense Vocab
Business Math
More...
Other Major Subjects
Science
Economics
History
Law
Performing-arts
Cooking
Logic & Reasoning
Trivia
Browse all subjects
Browse all tests
Most popular tests